Understanding Canadian Business

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UnderstandingCanadian Business

• Chapter 8
• Management and Leadership

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Learning Goals

• Explain how changes in the business environment
  are affecting management function.
• Describe the four functions of management.
• Describe the different types of planning and the
  importance of decision making.
• Describe the organizing function of management
  and the three skills needed by managers.
• Explain the differences between leaders and
  managers and describe leadership styles.
• Summarize the five steps of the control function
  of management.

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Managers Roles are Evolving

• Every business has scarce resources, and
  management is about deciding how to effectively
  use the resources.
• Managers are educated to
• Guide
• Train
• Support
• Motivate and
• Coach employees

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Managers Roles are Evolving

• Most modern managers emphasize
• Many companies dont hesitate to lay off
  employees, and employees dont hesitate to leave
  if their needs are not being met.

Teamwork and Cooperation vs Discipline and Giving
Orders
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Managers Roles are Evolving

• Management will demand a new kind of person
• A skilled communicator
• Team player as well asa planner
• Coordinator
• Organizer and
• Supervisor.

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Management

• The process used to accomplish organizational
  goals through
• Planning
• Organizing
• Leading and
• Controlling people and resources.

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What Managers Do
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How to Write a Great Business Vision Statement

• Susan L. Reid

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PlanningCreate Vision

• Set vision, goals, objectives
• Vision/mission why organization exists, purpose
  of organization
• Goals broad, long-term aims
• Objectives specific, short-term statements

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How to Write a Great Mission Statement

• Susan L. Reid

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Lego Mission StatementInspire and develop the
builders of tomorrow

• Our ultimate purpose is to inspire and develop
  children to think creatively, reason
  systematically and release their potential to
  shape their own future - experiencing the endless
  human possibility.

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Lego Vision StatementInventing the future of
play

• We want to pioneer new ways of playing, play
  materials and the business models of play -
  leveraging globalisation and digitalisation...it
  is not just about products, it is about realising
  the human possibility.

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SWOT Analysis

• A planning tool used to analyze an organizations
  strengths, weaknesses, opportunities, and
  threats.

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SWOT Analysis

• Strengths
• What is their strongest business asset?
• What do they offer that makes them stand out from
  the rest?
• What unique resources do they have?
• Do they have any specific marketing expertise?
• Do they have a broad customer base

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SWOT Analysis

• Weaknesses
• What can be improved?
• In what areas do their competitors have the edge?
  
• What necessary expertise / manpower do they
  currently lack?
• Do they have cash flow problems?
• Are they relying primarily on just a few clients
  or customers?

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SWOT Analysis

• Opportunities
• What trends do you see in their industry?
• What trends might impact their industry?
• What external changes present interesting
  opportunities?
• What have you seen in the news recently that
  might present an opportunity for them?

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SWOT Analysis

• Threats
• What obstacles do they face?
• What is the competition doing that they are not?
• What challenges can be turned into opportunities?
  
• Are external economic forces affecting their
  bottom line?

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Assignment to be Completed in Teams of 2

• Complete a SWOT analysis on one of the following
  choices
• Subway and Pita Pit
• McDonalds and Big League
• Starbucks and Second Cup
• Swiss Chalet and St. Hubert
• Lego and Mega Bloks
• Pizza Hut and Dominos

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Forms of Planning
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PlanningA Vision for the Organization

• Long-term plans - set the major goals and the
  strategy to obtain those goals
• Short-term plans - detailed plan, who does what,
  when and how will it be done
• Contingency plans - alternative plans (including
  crisis plans) to remain flexible and react to new
  opportunities and challenges

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Organizing

• Trend toward self-managed teams
• Stakeholders who is affected by the
  organization
• Staffing - hiring and keeping good employees
• Managing a variety of situations

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OrganizingCreating a Unified System

• Organizational Chart
• A visual device that shows the relationship and
  divides the organizations work it shows who is
  accountable for the completion of specific work
  and who reports to whom.

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Crisis Planning

• Crisis Planning is part of contingency planning.
• It involves reacting to sudden changes in the
  environment.
• What is the difference between a manager being
  proactive vs reactive?

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Decision MakingFinding the Best Alternative
Term Definition
Decision Making Choosing among two or more alternatives.
Problem Solving The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.
Brainstorming Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.
PMIPlus MinusImplications Listing all of the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
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Decision MakingFinding the Best Alternative
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Levels of Management
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Tasks SkillsAt Different Levels of Management

1. Technical skills involve the ability to perform
   tasks
2. In specific discipline (such as selling a product
   or developing software) or
3. Department (such as marketing or information
   systems)

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Tasks SkillsAt Different Levels of Management

1. Human relations skills involve communication and
   motivation they enable managers to work through
   and with people. Skills are also associated
   with leadership, coaching, morale building,
   delegating, training and development, and help
   and supportiveness.

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Tasks SkillsAt Different Levels of Management

1. Conceptual skills involve the ability to picture
   the organization as a whole and the relationships
   among its various parts.

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Conceptual Skills are Needed in
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StaffingGetting and Keeping the Right People

• Staffing is a management function that includes
  hiring, motivating, and retaining the best people
  available to accomplish the companys objectives.
• Many people are not willing to work at companies
  unless they are treated well and get fair pay.

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StaffingGetting and Keeping the Right People

• Employees may leave to find companies that offer
  them a better balance between work and home.
• Staffing is becoming a greater part of each
  managers assignment, and all managers need to
  cooperate with human resources to win and keep
  good workers.

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Job Interview Advice

• Defining Your Unique Selling Points

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Assignment

• In teams of 2
• Develop 10 interview questions
• Find 1 local job ads for high school students on
  one or a combination of the websites below
• Times and Transcript - http//timestranscript.can
  adaeast.com/classifieds/employment/pub3
• Workopolis www.workopolis.com
• Monster www.monster.ca
• Kijiji www.monctonkijiji.ca
• Handwrite or print answers and submit by Friday,
  October 3

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LeadingProviding Continuous Vision Values

• Communicate a vision and rally others around that
  vision.
• In doing so, the leaders should be openly
  sensitive to the concerns of followers, give them
  responsibility, and win their trust.
• Establish corporate values.
• The values include a concern for employees, for
  customers, for the environment, and for the
  quality of the companys products.

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LeadingProviding Continuous Vision Values

• Promote corporate ethics.
• Ethics include an unfailing demand for honesty
  and an insistence that everyone in the company is
  treated fairly.
• Embrace change.
• A leaders most important job may be to transform
  the way the company does business so that its
  more effective and efficient.

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Leadership Styles
Term Definition
Autocratic Leadership Involves making managerial decisions without consulting others.
Participative (democratic) leadership Consists of managers and employees working together to make decisions.
Free-rein (laissez-faire) leadership Involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
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Leadership Styles
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Enabling

• Giving workers the education and tools they need
  to make decisions.

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Reasons for Empowering Non-Supervisory Employees

• It leads to better decisions made by those
  closest to the customer
• Fewer, busier managers
• Predominance of knowledge workers
• Leads to better decisions and more valuable
  employees

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The 12 Rules of Leadership

1. Set a good example
2. Give your people a set of objectives and a sense
   of direction
3. Keep your people informed of new developments of
   the company and how theyll affect them
4. Ask your people for advice
5. Let your people know that you support them

1. Dont give orders
2. Emphasize skills, not rules
3. Give credit where credit is due
4. Praise in public
5. Criticize in private
6. Criticize constructively
7. Make it welcome that you welcome new ideas

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The 7 Donts of Leadership

1. Trying to be liked rather than respected
2. Failing to ask subordinates for their advice or
   help
3. Failing to develop a sense of responsibility in
   subordinates
4. Emphasizing rules rather than skill
5. Failing to keep criticism constructive
6. Not paying attention to employee gripes and
   complaints
7. Failing to keep people informed

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Knowledge Management

1. Finding the right information
2. Keeping the information in a readily accessible
   place and
3. Making the information known to everyone in the
   firm.

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ControllingMaking Sure it Works
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Measuring Customer Satisfaction

• Measuring success in a customer-oriented firm is
  customer satisfaction.
• This includes satisfaction of both external and
  internal customers.
• External customers are dealers, who buy products
  and sell to others, and ultimate customers (or
  end users), who buy products for their own
  personal use.
• Internal customers are individuals and units
  within the firm that receive services from other
  individuals or units.